Shein is preparing to confidentially file for a London IPO, marking a significant move for the fast-fashion etailer.
- The IPO could value Shein at approximately £50bn, becoming one of the largest deals on the London Stock Exchange in recent years.
- A prospectus is being prepared for submission to the Financial Conduct Authority, with filing expected soon.
- Conversations have occurred with UK officials, including UK chancellor Jeremy Hunt and former chancellor Sajid Javid, regarding the IPO.
- Shein’s financial performance in 2023 reflects strong growth, with substantial profits and gross merchandise value increases.
Shein is set to confidentially file for an initial public offering (IPO) in London, potentially marking a significant milestone in its corporate journey. The fast-fashion etailer is aiming for a valuation of around £50 billion, potentially making it one of the largest offerings on the London Stock Exchange in recent years.
To facilitate this, Shein is preparing a prospectus for the Financial Conduct Authority, indicating a substantial move towards its IPO aspirations. While the exact timing of the filing remains uncertain, it could take place within the month, suggesting a strategic shift in the company’s market focus.
Significant discussions have taken place between Shein executives and UK officials. In particular, UK chancellor Jeremy Hunt and Shein boss Donald Tang have engaged in talks in February, paving the way for this financial advancement. Furthermore, former chancellor Sajid Javid has been approached for a potential advisory role, which underscores the importance of this venture.
In parallel to its IPO considerations, Shein’s financial health appears robust. In 2023, the company posted profits surpassing $2 billion (£1.6 billion), demonstrating a remarkable increase from its 2022 net income of $700 million (£558 million) and $1.1 billion (£880 million) in 2021. In addition, the company recorded about $45 billion (£36 billion) in gross merchandise value, highlighting its expansive growth trajectory.
While the London IPO is on the horizon, it is not guaranteed, as previous discussions included the possibility of launching in New York. However, the focus on London underscores Shein’s strategic intent to capture the European market’s potential.
Shein’s prospective London IPO could position it as a major player on the global fashion stage, pending successful regulatory approval.
